The Solana (SOL) cryptocurrency recently reached a six-month high of $188 as investors reacted to Donald Trump’s victory in the U.S. presidential election. The price of Solana has increased by 3.4% over the past 24 hours, pushing its market cap to over $88 billion, thus surpassing BNB to become the fourth-largest cryptocurrency, according to CoinGecko data.
With Trump back in office, the crypto market anticipates a more favorable regulatory environment, which may potentially lead to the approval of a Solana exchange-traded fund (ETF) in the U.S. Balaji Srihari, Business Head at CoinSwitch, expressed hope for a regulatory environment that would allow Solana to fully realize its potential.
He stated that Trump’s victory could signal a more favorable regulatory environment for the crypto industry, potentially softening the SEC’s stringent stance on assets like Solana. However, he also noted that the future of Solana’s ETF will depend on a complex interplay of regulatory and market dynamics.
The SEC classifies Solana as a security, which complicates the ETF approval process. Solana must meet Anti-Money Laundering (AML) and Know Your Customer (KYC) standards, demonstrate strong demand, and ensure secure custody to be considered legitimate, according to CoinSwitch official. Trump’s re-election has been widely anticipated within the industry, as he has consistently shown support for the crypto industry throughout his campaign, including a push for deregulation and backing U.S.-based crypto mining.
Anmol Singh, Founder of Zeta Markets, sees Trump’s return as a potential boon for Solana’s prospects, particularly due to its strong fundamentals. He believes that Solana could become a major player if it gains ETF approval, alongside BTC and ETH. The 47th U.S. President even hinted at firing SEC Chair Gary Gensler, whose strict regulatory approach has been under scrutiny.
However, it should be noted that U.S. presidents do not have the power to fire heads of federal agencies. Nevertheless, analysts expect Gensler’s potential exit could create an opening for a new SEC chair who may prioritize supportive policies for crypto assets like Solana.
